Bahamas Enacts New Crypto Law Post-FTX Collapse

New legislation aims to restore trust in the Bahamas' crypto sector.

The Bahamas' Parliament has passed the Digital Assets and Registered Exchanges Act, 2024 (DARE 2024), in response to the fallout from the FTX collapse in November 2022. The new law introduces comprehensive reforms to address the evolving landscape of digital assets and cryptocurrency markets. Key aspects include expanded regulation of digital asset activities, enhanced investor and consumer protections, new disclosure and financial reporting requirements, and a stablecoin framework that prohibits algorithmic stablecoins.

The Securities Commission of The Bahamas stated, "Building upon the foundation laid by the DARE Act, 2020, the legislation introduces comprehensive reforms designed to address the evolving landscape of digital assets and cryptocurrency markets."

The collapse of FTX, which was headquartered in the Bahamas, spurred the need for stricter regulations to restore confidence in the country's financial services sector. Prime Minister Philip Davis highlighted the importance of the DARE Act in ensuring robust investor and consumer protection mechanisms.

Christina Rolle, Executive Director of the Securities Commission, remarked, "We have created a framework that not only focuses on investor protection, but also encourages responsible innovation."

With DARE 2024, the Bahamas aims to rebuild its reputation as a credible hub for financial services and digital asset innovation.

photo source / Blockonome